Julia Stoll
Research expert covering TV and video media
Gaming in China - statistics & facts
The gaming industry has developed in leaps and bounds in China. With 674 million players spending an average of 483 yuan each on video games, China boasts the world's most lucrative gaming market. On one hand, rising consumer spending and active investment activities have effectively spurred the development of the game entertainment and home console industries. On the other hand, China's stringent video game regulations since 2019 have forced the industry to adapt significantly, influencing game design, market strategies, and economic outcomes for both domestic and international players.
The gaming scene in China
China’s gaming revenue passed the 300 billion yuan mark in 2023 after a more than triple increase over the last decade. It comes as no surprise that mobile games have become the industry pillar because of their immense popularity. A significant chunk of the new games launched in China were mobile games, which contributed over 70 percent of the industry sales revenue. Client games came in second with a market share of about 21 percent in 2024. Browser-based, home console, and other segments accounted for only six percent altogether. In terms of genres, shooter and role-playing games remained the lead, while dating simulation titles were on the rise.Navigating the regulatory maze
Foreign gaming companies face significant barriers when entering the Chinese market due to challenging regulations and cultural preferences. China has a rigorous approval process for new games, requiring each title to undergo a thorough review for content that aligns with Chinese cultural values and political sensitivities. Between 2020 and 2024, China approved less than 120 imported games per year. Content deemed inappropriate, such as excessive violence, gambling elements, and politically sensitive material, is censored or modified. Consequently, international games often need to be altered for legal compliance, leading to delayed releases and additional costs. Partnering with local firms is a common practice to ensure games meet regulatory standards.Domestic companies are hitting the gold coins
In this context, local players, specifically Tencent, possess significant advantages in the Chinese gaming sector. With blockbuster titles like Honor of Kings, PUBG Mobile, and League of Legends, Tencent has been holding more than half of the Chinese video game market. In comparison, its imminent domestic rival NetEase occupied a market share of about 17 percent, with well-known games like Identity V, Onmyoji, and Harry Potter: Magic Awakened. Other relatively new entrants like miHoYo, 37 Interactive Entertainment, and Perfect World have gained a toehold in the gaming market.The industry struggles
It is worth noting that shifting game approvals and content restrictions have posed persistent challenges to game developers and publishers in China. Apart from temporary license freezes, the Chinese authority has announced new policies, including revised content guidelines, mandatory requirements for underaged players such as real-name registration and a playtime limit. Chinese gaming companies have to adjust their business models and game designs to comply with regulations, implementing playtime tracking and "teen mode" features, developing content that adheres to cultural guidelines, and enhancing parental controls. All these measures have had an immediate impact on the industry, resulting in a lower gaming time among minors.
